Selected financial statement accounts are as follows. How much is the firm's ending equity?

Name: Selected financial statement accounts are as follows. How much is the firm's ending equity?
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Question

Quizplus · Accepted Answer

We can use the accounting equation: Assets = Liabilities + Equity.
Given information:
Assets = $175,000
Liabilities = $78,000
We can calculate equity as follows:
Equity = Assets - Liabilities
Equity = $175,000 - $78,000
Equity = $97,000
Therefore, the firm's ending equity is $97,000. Option B is the correct answer.

Selected Financial Statement Accounts Are as Follows